URA tasked to widen tax base as government targets 20% tax-to-GDP ratio

Kampala. Finance Minister Henry Musasizi has directed the Uganda Revenue Authority (URA) to strengthen measures aimed at expanding the country’s tax base as government seeks to increase the tax-to-GDP ratio from 14.2 percent to 20 percent over the next four years.

Mr Musasizi made the remarks on Thursday during a meeting with the URA Board chaired by Mr Emmanuel Katongole and the authority’s senior management led by Commissioner General John Musinguzi.

The meeting reviewed revenue enhancement strategies for the 2026/27 to 2029/30 financial years.

Mr Musasizi said URA’s strategic direction aligns with the government’s objective of raising domestic revenue to finance national development priorities.

He urged the tax body to ensure that all Ugandans with taxable income contribute their fair share, arguing that the burden of taxation should not continue to fall on the relatively small number of compliant taxpayers.

“We must ensure that everyone who is liable to pay tax does so. Paying taxes should not remain the responsibility of only a few compliant Ugandans,” Mr Musasizi said.

During the meeting, URA Board Chairman Emmanuel Katongole called for greater integration of data between the tax authority and government ministries, departments and agencies to improve revenue assurance.

He also proposed the establishment of a centralized inland container depot (ICD) at Namanve to facilitate trade, reduce logistics costs, minimise delays and curb revenue leakages.

Mr Katongole further urged government to review Uganda’s double taxation agreements, saying some of the existing arrangements limit the country’s ability to tax certain income.

Commissioner General John Musinguzi said improving domestic revenue mobilisation requires coordinated efforts across government institutions and the private sector.

He said stronger tax compliance, improved visibility of economic activities and sustained government support would help Uganda narrow its revenue gap and finance key development programmes.

The meeting was also attended by the State Minister for Privatisation and Investment, Ms Evelyn Anite Aminah Zawedde, who urged URA to intensify taxpayer education, broaden the tax base and promote the formalisation of businesses.

She also challenged the authority to strengthen integrity measures within the institution to eliminate corruption among its st